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A taxpayer inquired whether compensation received for the temporary occupation of their home and garage for 24 months qualifies for the reduction applicable to income with a generation period exceeding two years. The DGT ruled that the compensation constitutes income from real estate capital and does not meet the requirements for said reduction.
This ruling clarifies that compensation for temporary occupation is treated as real estate capital income rather than capital gains, meaning it cannot benefit from the specific tax reduction for long-term asset generation.
The tax team reviews your specific situation.
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